Teachable moments on fire insurance. I'm David Brancaccio. California officials and insurance

representatives are holding workshops starting this weekend to help people deal with their insurance

companies amid the fires. The stuff is complicated. Did you know a common type of policy reduces

payouts by the depreciation of the home. Did you know you don't always

have to rebuild in the same place? California's insurance commissioner Ricardo Lara spoke with my

colleague Nova Saffo. It seems that with, you know, construction costs really uncertain. It would

be next to impossible for folks to really get everything they're going

to need from insurance for the rebuilding, just from insurance. Does that seem to you likely

outcome that there will be some kind of gap? You're absolutely right. And unfortunately,

we've seen this after these megafires. One of the fraud schemes that we often see after these metafires is you have out-of-state

adjusters and some scrupulous attorneys making false promises.

And so what I say people is like, you know, if you're going to hire an attorney,

if you're going to hire just for me with an adjuster, make sure they understand California

insurance law.

Even if nothing else, though, is done wrong, even if the insurance companies and the adjusters

all do their jobs correctly, there is very strong likelihood, though, right, that there will

be an amount that is not covered.

Am I getting that right or is that wrong?

No, I mean, I think the other thing

of a, I think what you're getting at too, which is a very real issue is the issue about under insurance.

You say, you know, let me get a bare bones policy and eventually I'll get to adjusting the price

of my home or when I do upgrades. And for so many people, they either forget or they know it's too late.

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